In this morning’s edition of The Macro Show, Hedgeye CEO Keith McCullough discusses the Implied Vol premiums & discounts he’s looking to take advantage of, and the key sectors he’s long (and his position sizing) amid the Phase Transition into #Quad3.
“Your positions, in $XLU for example, should be bigger than your $XLE position; it has a lower beta and volatility. So when you volatility adjust your positions (which you should) you’re going to have more cash allocated to the ones that can’t hurt you as much,” explains McCullough, as he highlights the asset allocations he’s focused on in #Quad3.
“We’re buyers of $QQQ on dips, and sellers of $XLF on rips.”
